UAE expats should be aware of laws as ignorance of the law will not be considered as an excuse in court and breaking the law will get you into legal trouble.

1. A GLIMPSE INTO UAE
LAWS
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2. Before you plan a visit to any country, be it for a short trip or to start a company,
basic knowledge about the laws and regulations governing that place is a must.
UAE has issued several laws related to the economy, trade, trade license and
investment since its formation in 1971.There are many local laws pertaining to
alcohol consumption, dressing and public displays of affection as well. Expats
should be aware of these as ignorance of the law will not be considered or accepted
as an excuse in court and breaking the law will get you into legal trouble.

3. Labor law
Federal Decree Law No. 11 for the year 2008 governs the labor rights of employees
in the public sector and in the private sector, the Federal Law No. 8 of 1980 is
applicable.These laws oversee issues associated with working hours, vacation and
public holidays, sick and maternity leave, employing juveniles, employee records,
safety standards, termination of employment and end of service gratuity payments.
Generally, free zones are not governed by the UAE Labor Law as each free zone has
its own employment law.

4. Commercial Companies Law
The law specifies that UAE should be the nationality of every company established
in the country.All mainland companies are subject to Commercial Companies Law,
whereas free zone companies are exempt from the provisions of this law.The new
UAE Commercial Companies Law (Federal Law No. 2 of 2015) (“CCL”) came into
force on 1st July 2015.

5. As per the new CCL, all companies with public accountability are required to use
full IFRS as issued by the IASB. IFRS standards play a pivotal role in global financial
reporting as they are being embraced by countries across the globe. Companies
listed on NASDAQ Dubai, Dubai Financial Services Authority (DFSA), and Abu Dhabi
Securities Exchange need to comply with IFRS standards.

6. Anti-Money Laundering law
Money laundering, illegal transfers of money and criminal activity are well monitored in UAE
and the country maintains a strong Anti-Money Laundering (AML) system.To better
scrutinize cash flows and combat terrorist financing, the government has taken various
steps. This includes the enactment of Anti-Money Laundering law and the counterterrorism
law.Two laws serve as the basis for the country’s Anti Money Laundering (AML) and
counterterrorist financing (CTF) efforts: Law No 4/2002, the Anti Money Laundering law,
and Law No. 1/2004, the counterterrorism law.

7. Bankruptcy Law
The Federal Bankruptcy Law (under the federal decree No. (9) for 2016) identifies
various techniques to avoid bankruptcy cases and the liquidation of debtors’ assets,
that include consensual out-of-court financial restructuring, composition
procedures, financial restructuring and the potential to secure new loans with
respect to the rules and regulations.

8. Tax laws
The landmark Federal Law No. 7 of 2017 (Law No. 7) issued byThe United Arab
Emirates (UAE) Ministry of Finance (MoF) “sets the foundations for the planned
UAE tax system, regulating the administration and collection of taxes and clearly
defining the role of the FederalTax Authority (FTA).”The law deals with tax
procedures, tax implementation, tax rates, tax obligations, cases of tax exemption,
as well as procedures and rules of tax registration and cancellation.

9. There are many more laws in UAE and these are just some of the major laws that
primarily concerns businesses. It’s the responsibility of every one of us to follow and
respect the laws of a country, if we wish to live and work there.

10. CONTACT US
HLB HAMT
Level 18, CityTower-2,
Sheikh Zayed Road
PO Box 32665
Dubai – United Arab Emirates.Tel: +971 4 327 7775
E-mail: dubai@hlbhamt.com
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